EU proposes economic aid to Armenia, Georgia

BRUSSELS, Oct. 16 -- The European Commission has proposed offering 100 million euros (149 million U.S. dollars) of economic assistance to Armenia and 46 million euros to Georgia.

The EU's executive body said Friday the aid to Armenia would include a loan of 65 million euros and a grant of 35 million euros to support an adjustment program agreed with the International Monetary Fund (IMF) to help the country handle the global financial crisis.

The allocation to Georgia was part of an EU package of up to 500 million euros aimed at supporting the Caucasian country's economic recovery after its military conflict with Russia last year, said the Commission.

The proposal needs approval by EU member states.